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Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. B)

Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000.

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B) How could you construct a 1-year forward loan beginning in year 3? (Face Value)

C) How could you construct a 1-year forward loan beginning in year 4? (Face Value)

image text in transcribedimage text in transcribed Maturity(Years)12345Price$970.93898.39836.92776.20685.42 Complete this question by entering your answers in the tabs below. How could you construct a 1-year forward loan beginning in year 3 ? Note: Round your Rate of synthetic loan answer to 2 decimal places. How could you construct a 1 -year forward loan beginning in year 4 ? Note: Round your Rate of synthetic loan answer to 2 decimal places

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